Finding a Needle in a Haystack

AUTHOR’S POST

Mandy Moody, CFE
ACFE Social Media Specialist

Looking for a needle in a haystack is best only used figuratively. No one actually wants to spend a Saturday afternoon digging through haystacks for fun. But what if finding that needle saved you time and lots of money? And, what if you had special tools that helped you isolate the needle, amplify it and find it in a fraction of the time it would normally take? What if you could even predict where that needle would most likely be before you stepped on it and felt its effects?

That’s exactly what many data analysts are doing with predictive analytics software designed to detect patterns, anomalies and trends associated with fraud. Tomorrow, May 30 at 2 p.m. EDT, the ACFE will host a 100-minute webinar detailing how fraud examiners can use Predictive Analytics to Prioritize Investigations and Audits of Contract Fraud, Waste and Abuse. Two speakers from Elder Research, Inc. will detail exactly how predictive analytics can help find those needles in the haystacks.

You will walk away knowing how to:

• Define predictive analytics and the myths associated with it
• Start a data mining or predictive analytics group at your company
• Help your organization prioritize high-risk leads or audits for investigators and auditors by using predictive analytics
• Use predictive analytics to produce high ROI by focusing agents and analysts on cases with higher probability of being fraud, waste or abuse

You can learn these lessons and more at the webinar tomorrow at 2 p.m. EDT. If you can’t make it tomorrow and will be attending the 24^th Annual ACFE Global Fraud Conference in Las Vegas next month, be sure to add this session to your schedule.

Read more about the Predictive Analytics webinar and register today.

A Contract Bid that Just Didn’t Feel Right

GUEST BLOGGER

Peter Parillo, CFE, CPA, Director of Internal Audit
Folsom, N.J.

Within the past 10 years, the word “fraud” has been used many times to describe the unfortunate actions of individuals and companies. Afterwards, a debate usually begins, and people ask questions such as, “How did this happen?” and “How didn’t anyone see this happening?” in disbelief and anger.

Most people are shocked to learn that more than 7 percent of fraud discovered is done so by accident. In my experience, everything seems obvious only after a fraud is discovered. Increasing one’s knowledge regarding the possibility that fraud may occur and identifying situations where fraud can happen is imperative to the success of any fraud examiner. Knowing this, I motivate all members of my team to become Certified Fraud Examiners (CFEs).

Maria, a member of the team, was reluctant to become a CFE, but was quickly intrigued by some of the topics presented at the ACFE Global Fraud Conference I attended in Las Vegas. Within a few days, Maria began studying for the CFE Exam, and within a few months the ACFE notified her that she had passed the Exam and should be proud to hold the title of CFE.

With this newly obtained knowledge, Maria began looking at audit projects a little differently. Her first project after earning her CFE was a construction project at a nearby facility. After identifying contract specifics, she noticed a vendor named All Right Construction. Maria started her work by asking how the facility chose All Right as a vendor. The response she received was not what she expected. No one she asked knew how the vendor was selected or who was responsible for monitoring the progress of the construction. Maria identified the person who signed the contract on behalf of the vendor, Tony Rizzo, and called him directly. After exchanging pleasantries, Maria asked Tony who told him to perform the work. Tony replied, “John from Facilities.”

The following day Maria met with John who introduced himself and stated, “Tony informed me that you have some questions regarding the construction work?” Maria, shocked that Tony called John, told him that she did and asked him how he typically selects vendors. Looking annoyed, John responded, “The company has a process that requires all proposals be received, and after all bids are received a determination is made regarding which vendor gets the job.” Maria understood the response she received, but felt that John was holding back information. Maria then asked John who was responsible for gathering the bids. John replied, “Well, I do.”

Maria immediately notified me of the issue and continued to investigate. She identified that of the last 12 projects initiated by the facility, All Right was awarded 10. In addition, for each of the 10 projects awarded, All Right was paid for additional work to be performed outside of the initial proposal.

John was asked to explain why All Right was awarded the majority of the contracts, but could not explain. Management was made aware of the issue and John was terminated. John’s replacement was made aware of the issue and within two weeks of starting, was contacted by Tony from All Right, asking if he was interested in going on a big game fishing trip. The new person politely declined.

Afterwards, Maria credited studying for the CFE Exam as why she did not feel comfortable with the initial response. Maria informed me, “It just didn’t feel right, knowing now about fraud scenarios that can happen and the potential for it happening.” Maria added, “It makes me wonder all the things I potentially missed in the past.”

How to Work With a Recruiter

GUEST BLOGGER

Kathy Lavinder
Executive Search Specialist and Speaker at the 24th Annual ACFE Global Fraud Conference, June 23-28, in Las Vegas

Most people know what recruiters do, but there is some confusion about how recruiters work. When looking for a role in fraud prevention, detection or investigation, you should know:

Recruiters may or may not find you a job. 

Recruiters typically work for companies, not job seekers, so their goal is to find candidates who match job specifications. Contingent recruiters are paid if a candidate they’ve introduced is hired, but they occasionally work on behalf of candidates. They may share an individual’s résumé with an organization where they have a relationship in case the individual could fill a need. Recruiters who focus on fraud roles know that this space is dynamic and an organization can have a need at any time or could simply want to see an impressive resume. Recruiters are good at spotting strong candidates. If that describes you, recruiters may be eager to share your résumé.

While all recruiters want to meet new people, retained recruiters must focus on identifying candidates who match particular job specs. They are not as likely to circulate your résumé on a speculative basis. When a recruiter says he’ll “keep you in mind,” that simply means you’re in a candidate database.

Recruiters are a resource, not career coaches or career counselors.

Recruiters are a great source for information, particularly in the anti-fraud arena. Recruiters can spot hiring trends and understand how various organizations are approaching fraud. Recruiters can articulate what employers need, comment on how educational programs and professional certifications are viewed, and see how best practices are evolving. 

If you’ve been out of the job market, a brief conversation with a recruiter can get you up to speed on the marketplace. Recruiters don’t have time for lengthy conversations so value their time. Don’t expect a recruiter to provide a detailed critique of your résumé or function as an editor. A recruiter can quickly comment on how you’ve communicated your experience and technical know-how.

Recruiters are allies, but not your agents.

Recruiters should prepare you for an interview and share information about their clients’ needs, culture and the fraud program. Don’t expect a recruiter to tell you everything. That would be indiscreet and a violation of a recruiter’s responsibility to the client. Good recruiters do not feed candidates their lines or encourage them to misrepresent themselves. In the anti-fraud world there is simply no way you can “fake it till you make it,” so recruiters know you either have the capabilities or you don’t. Recruiters should get permission before sharing your résumé or calling references. 

Your responsibility is to be honest about your strengths and weaknesses, what you desire to do next, and the type of environment you’re seeking. Be open about your motivation for a change, timing and any other issue that could impact your ability to make a job change.

Having a recruiter’s contact information in your smart phone is like having an umbrella in your briefcase. When you need one, it’s good to know it’s there.

A Sure Bet: ACFE Global Fraud Conference Heads to Vegas

GUEST BLOGGER

Leslie Simpson, CFE
ACFE Director of Events

It seems like ages ago that I attended my first ACFE Global Fraud Conference. To be honest, it actually was ages ago. It was 1999. Y2K was looming in the distance and Doc Marten’s were dying a slow death. The Conference was at Caesar’s Palace in Las Vegas, and one of our keynote speakers was Susan McDougal (she served prison time as a result of the Clinton Whitewater controversy). I had my first front row Wayne Newton experience - I’ve never been the same.  I gambled for the first time with $5 I got from my dad, Jim Ratley, who was then the ACFE’s Program Director. Beginner’s luck awarded me a whole $50. And, just in case you are wondering, I did pay my dad back his $5 (though he’ll tell you I didn’t). It’s hard work pulling the lever on that slot machine, so I figured the profit should be all mine.

In the 14 years working at the ACFE, I’ve been lucky enough to have worked in many different areas of the business while focusing on what I enjoy most about my job: marketing and communication.  After a short three years leading our Member Services team, I was given the opportunity to lead the Events Department. This role has taken me back to organizing my favorite event, the ACFE Global Fraud Conference.

Three years brought many changes to the Events Department, however one thing remains the same. We still offer the same great conference except, true to ACFE form, we have scrutinized the details to make it even better this year.

We’ve placed more emphasis on the global nature of our event (our attendees represent more than 50 countries). By adding expert speakers from countries like Canada, the UK, Belgium, Australia, Germany, Hong Kong and South Africa, we are hoping to give attendees a truly global perspective.

Additionally, we searched high and low for timely and interesting topics that provide you with the tools you need to stay ahead in the world of fraud prevention and detection. Here are some sessions you won’t want to miss:

• Forensic Interviewing: Techniques to Detect Deception for Auditors, Examiners and Investigators
• Benford's Law: A Review, Relevant Findings and Recent Applications
• When Is Too Much Really Too Much: Dealing with Data Challenges
• Case Studies in Asset Tracing and Recovery: Melissa King and Hassan Nemazee
• Just Because You’re an Expert Doesn’t Make You Interesting

If you see me with a little more pep in my step in Vegas, it’s because I’m excited to be a part of such a monumental event, and I’m thrilled at the thought that this year’s Conference will be the best yet. I hope you’ll join me in Las Vegas, and see for yourself. If you do, please find me and say “hello.” I just might give you some beginner’s luck.

Learn more about the 24th Annual ACFE Global Fraud Conference at FraudConference.com.